StoneCo (NASDAQ:STNE) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

StoneCo (NASDAQ:STNE) released its earnings results on Thursday. The company reported $0.45 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.03), FiscalAI reports. StoneCo had a return on equity of 22.19% and a net margin of 22.92%. The company had revenue of $126.71 million during the quarter, compared to analysts’ expectations of $715.99 million. StoneCo updated its FY 2026 guidance to 2.101-2.218 EPS.

Here are the key takeaways from StoneCo’s conference call:

• Stone cut its 2026 outlook: adjusted gross profit is now expected at BRL 6.1–6.2 billion, down from BRL 6.6–7.0 billion, and adjusted basic EPS at BRL 9.1–9.5, down from BRL 10.8–11.4. The company also withdrew its 2027 targets, citing macroeconomic uncertainty and limited visibility on interest rates and credit conditions.
• Management reported early signs of improvement in merchant retention: TPV growth accelerated, overall market share stabilized, and Stone gained modest share in its segment. The active merchant base reached 5.1 million, although card TPV continued to decline year over year.
• Credit-related provisions and higher operating costs weighed on profitability, and Stone is reviewing its credit models for a tougher economic outlook. Cost of risk improved to 20.1% from 21.5% in the prior quarter, but management expects the decline toward the mid-to-high teens to take longer than previously anticipated.
• Stone’s credit portfolio grew 78% year over year to BRL 4.1 billion, with growth increasingly directed to government-backed loans; newer credit cohorts are performing better, according to management. The company also repurchased more than BRL 200 million of shares in the quarter and reaffirmed its plan to distribute BRL 2 billion in excess capital during 2026.

StoneCo Trading Up 0.6%

Shares of NASDAQ:STNE traded up $0.04 during trading on Friday, hitting $7.76. The company had a trading volume of 7,160,425 shares, compared to its average volume of 5,625,680. The stock has a market cap of $1.93 billion, a price-to-earnings ratio of 3.13, a price-to-earnings-growth ratio of 0.22 and a beta of 1.76. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.26 and a quick ratio of 1.26. The company has a fifty day simple moving average of $9.75 and a two-hundred day simple moving average of $11.86. StoneCo has a one year low of $7.06 and a one year high of $18.19.

Insider Buying and Selling at StoneCo

In other news, Director Silvio Morais sold 21,000 shares of the stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $9.91, for a total value of $208,110.00. The sale was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 11.25% of the company’s stock.

StoneCo News Summary

Here’s some of the latest news about STNE:

• Neutral Sentiment: StoneCo filed unaudited interim financial statements for the quarter ended September 30. The filing itself provides financial disclosures but no separate new outlook. StoneCo Files September 30 Interim Financial Statements
• Negative Sentiment: Third-quarter earnings missed estimates: StoneCo reported about $0.45–$0.46 per share, compared with consensus estimates of $0.48–$0.49. The shortfall may weigh on investor sentiment. StoneCo Q3 Earnings Lag Estimates
• Negative Sentiment: The company revised its 2026 guidance lower and withdrew its 2027 target, signaling a less certain near-term outlook. Its updated 2026 EPS range is $2.101–$2.218, versus a consensus estimate of $2.210. StoneCo’s Q3 Earnings Miss, Guidance Revised Lower

Analyst Upgrades and Downgrades

STNE has been the topic of several research analyst reports. The Goldman Sachs Group decreased their price target on shares of StoneCo from $11.00 to $9.50 and set a “neutral” rating on the stock in a research note on Friday, October 30th. Weiss Ratings cut StoneCo from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, November 3rd. UBS Group downgraded StoneCo from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $15.00 to $8.50 in a research report on Thursday, November 5th. Finally, Jefferies Financial Group started coverage on StoneCo in a research note on Thursday, July 23rd. They set a “hold” rating and a $12.60 price target for the company. Two analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, StoneCo currently has a consensus rating of “Hold” and a consensus target price of $12.30.

About StoneCo

StoneCo Ltd. is a Brazilian financial technology company that provides payment processing and business management solutions, primarily to merchants in Brazil. Its services are designed to help businesses accept and manage payments across in-person and online channels. The company’s offerings include payment terminals, digital payment tools, financial services and software for managing business operations. Through brands such as Stone, Pagar.me and Linx, StoneCo serves businesses ranging from smaller merchants to larger retailers.